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Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Deferred policy acquisition costs asset by segment
The Company's deferred policy acquisition costs (DAC) by reporting segment were as follows:
($ in thousands)December 31,
20202019
Property and Casualty$26,153 $28,616 
Supplemental4,270 1,967 
Retirement137,735 185,294 
Life61,670 60,791 
Total
$229,828 $276,668 
Adjustment to amortization expenses The Company recognized the following adjustments to DAC amortization expense as a result of evaluating actual experience and prospective assumptions (i.e., the impact of unlocking):
($ in thousands)Year Ended December 31,
202020192018
Increase (decrease) to DAC amortization expense:
Retirement$(1,766)$3,480 $3,948 
Life(337)(267)283 
Total$(2,103)$3,213 $4,231 
Property and equipment The following amounts are included in Other assets in the Consolidated Balance Sheets:
($ in thousands)December 31,
20202019
Property and equipment$131,269 $166,583 
Less: accumulated depreciation66,552 106,458 
Total$64,717 $60,125 
Investment contract and life policy reserves
This table summarizes the Company's investment contract and policy reserves.
($ in thousands)December 31,
20202019
Investment contract reserves$4,847,649 $4,675,774 
Policy reserves1,597,674 1,558,678 
Total
$6,445,323 $6,234,452 
Summary of guaranteed minimum death benefit The Company regularly monitors the GMDB reserve considering fluctuations in financial markets. The Company has relatively low exposure to GMDB risk as shown below.
($ in thousands)December 31,
20202019
GMDB reserve$77 $126 
Aggregate in-the-money death benefits under the GMDB provision26,710 29,367 
Variable annuity contract value distribution based on GMDB feature:
No guarantee
26 %28 %
Return of premium guarantee
69 %67 %
Guarantee of premium roll-up at an annual rate of 3% or 5%
5 %5 %
Total
100 %100 %
Schedule of FHLB funding agreements
As of December 31, 2020, scheduled maturity dates for outstanding FHLB funding agreements were as follows:
($ in thousands)
AmountEffective Interest RateMaturity Date
$50,0000.324%January 15, 2021
25,0000.297%February 12, 2021
8,0000.000%May 17, 2021
20,0000.486%November 15, 2023
100,0000.306%December 15, 2023
50,0000.514%January 12, 2024
125,0000.570%September 11, 2025
12,5000.670%June 26, 2025
200,0000.270%January 16, 2026
Total$590,500
Stock options fair value pricing model weighted-average assumptions The fair value of stock options granted was estimated on the respective dates of grant using the Black-Scholes option pricing model with the weighted average assumptions shown in the following table.
Year Ended December 31,
202020192018
Number of stock options granted234,248 282,040 223,208 
Weighted average grant date fair value of stock options granted$6.02 $6.26 $7.16 
Weighted average assumptions:
Risk-free interest rate0.8 %2.5 %2.6 %
Expected dividend yield2.7 %2.9 %2.6 %
Expected life, in years5.15.04.8
Expected volatility (based on historical volatility)22.8 %21.9 %21.5 %
Computations of net income per share on both basic and diluted bases, including reconciliations of the numerators and denominators
The computations of net income per share on both basic and diluted bases, including reconciliations of the numerators and denominators, were as follows:
($ in thousands)Year Ended December 31,
202020192018
Basic:
Net income for the period$133,315 $184,443 $18,343 
Weighted average number of common shares
during the period (in thousands)
41,881 41,738 41,570 
Net income per share - basic$3.18 $4.42 $0.44 
Diluted:
Net income for the period$133,315 $184,443 $18,343 
Weighted average number of common shares
during the period (in thousands)
41,881 41,738 41,570 
Weighted average number of common equivalent shares to reflect the
dilutive effect of common stock equivalent securities (in thousands):
Stock options44 79 100 
CSUs related to deferred compensation for employees— — 25 
RSUs related to incentive compensation116 132 199 
Total common and common equivalent shares adjusted
to calculate diluted earnings per share (in thousands)
42,041 41,949 41,894 
Net income per share - diluted$3.17 $4.40 $0.44